BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SB 164|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 445-6614 Fax: (916) | |
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THIRD READING
Bill No: SB 164
Author: Simitian (D)
Amended: As introduced
Vote: 21
SENATE GOVERNANCE & FINANCE COMMITTEE : 6-1, 3/23/11
AYES: Wolk, DeSaulnier, Hancock, Hernandez, Kehoe, Liu
NOES: Fuller
NO VOTE RECORDED: Huff, La Malfa
SENATE APPROPRIATIONS COMMITTEE : 6-2, 5/26/11
AYES: Kehoe, Alquist, Lieu, Pavley, Price, Steinberg
NOES: Walters, Runner
NO VOTE RECORDED: Emmerson
SUBJECT : Personal income tax: voluntary contributions
SOURCE : Author
DIGEST : This bill extends the repeal dates of the
check-off on tax returns of the State Childrens Trust Fund
for the Prevention of Child Abuse and the Rare and
Endangered Species Preservation Program from January 1,
2013 to January 1, 2018.
ANALYSIS : Existing state law allows taxpayers to
contribute money to one or more of 15 voluntary
contribution funds (VCFs) by checking a box on their state
income tax return. California law requires contributions
made through check-offs to be made from taxpayers' own
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resources and not from their tax liability, as is possible
on federal tax returns. Check-off amounts may be claimed
as charitable contributions on taxpayers' tax returns
during the subsequent year.
Existing law allows the Franchise Tax Board (FTB) to design
tax returns to provide for the designation of contributions
to specified funds either on the return itself or on a
separate schedule that must be attached to the return.
This bill extends the check-off for both the State
Children's Trust Fund for the Prevention of Child Abuse and
the Rare and Endangered Species Preservation Program from
January 1, 2013 to January 1, 2018.
Comments
2011 Check-offs . Following is a list of 2011 check-offs
and contribution amounts received in 2010:
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|Alzheimer's Disease/Related Disorders |$426,417 |
|Fund | |
|-----------------------------------------+-------------------|
|Arts Council Fund |Initial Tax Return |
| |2010 |
|-----------------------------------------+-------------------|
|CA Breast Cancer Research Fund |$519,728 |
| | |
|-----------------------------------------+-------------------|
|CA Cancer Research Fund |$275,587 |
| | |
|-----------------------------------------+-------------------|
|CA Firefighters' Memorial Fund |$207,455 |
| | |
| | |
|-----------------------------------------+-------------------|
|CA Fund for Senior Citizens |$296,144 |
| | |
|-----------------------------------------+-------------------|
|CA Peace Officer Memorial Foundation |$135,250 |
|Fund | |
|-----------------------------------------+-------------------|
|CA Police Activities League Fund |Initial Tax Return |
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| |2010 |
|-----------------------------------------+-------------------|
|CA Sea Otter Fund |$263,543 |
| | |
|-----------------------------------------+-------------------|
|CA Seniors Special Fund |$59,192 |
| | |
|-----------------------------------------+-------------------|
|CA Veterans Homes Fund |Initial Tax Return |
| |2010 |
|-----------------------------------------+-------------------|
|Emergency Food for Families Fund |$487,333 |
| | |
| | |
|-----------------------------------------+-------------------|
|Rare & Endangered Species Preservation |$578,215 |
|Program | |
|-----------------------------------------+-------------------|
|Safely Surrendered Baby Fund |Initial Tax Return |
| |2010 |
|-----------------------------------------+-------------------|
|State Children's Trust for the |$448,081 |
|Prevention | |
|$448,081 | |
|of Child Abuse | |
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With a few exceptions, VCFs remain on the return until they
are either repealed or fail to meet their minimum
contribution amount. The following chart shows the monies
received in recent years for the State Children's Trust
Fund for the Prevention of Child Abuse and the Rare and
Endangered Species Preservation Program. The 2011 minimum
contribution requirement for these two funds is $305, 338
per fund. The minimum contribution amounts are adjusted
annually for inflation.
2010 2009 2008 2007
Children's Trust Fund $448,081
$528,298 $528,609 $499,827
Endangered Species Fund $578,215
$648,868 $580,823 $572,043
Similar legislation . In addition to this bill, the
following bills have been introduced this year:
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SB 583 (Vargas) creates a VCF designation on the personal
income tax form for taxpayers to contribute to the ALS/Lou
Gehrig's Disease Research Fund.
AB 152 (Fuentes) requires, in part, that contributions
received under the Emergency Food for Families Fund are
used for the purchase, storage, and transportation of food
grown and produced in California.
AB 233 (Hall) creates a VCF designation on the personal
income tax form for taxpayers to contribute to the
California YMCA Youth and Government Fund.
AB 564 (Smyth) creates a VCF designation on the personal
income tax form for taxpayers to contribute to the
Municipal Shelter Spay-Neuter Fund. The bill also requires
a tax preparer, who prepares a tax return for a taxpayer,
to inform the taxpayer of existing voluntary contribution
funds.
AB 764 (Swanson) creates a VCF designation on the personal
income tax form for taxpayers to contribute to the
Victim-Witness Assistance Fund for community-based
organization that serve minor victims of human trafficking.
AB 971 (Monning) extends the repeal date of the California
Sea Otter Fund by five years.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
Fiscal Impact (in thousands)
Major Provisions 2011-12 2012-13 2013-14 Fund
Taxpayer donations Average annual revenues of
$1,173 Special*
(revenue) from 2014-15 through 2018-19
Tax revenue loss Average annual revenue loss of
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$70General
from 2014-15 through 2018-19
Department of Social Minor costs to administer
child General
Service administration abuse prevention funds
Department of Fish and Minor costs to administer
endangered Special**
Game administration species preservation funds
FTB administration Minor annual administrative
costs, General
reimbursed from donations
* Average annual donations of approximately $563,000 to
the State Children's Trust Fund and approximately
$610,000 to the Endangered and Rare Fish, Wildlife, and
Plant Species Conservation and Enhancement Account.
** Fish and Game Preservation Fund
SUPPORT : (Verified 5/27/11)
American Federation of State, County and Municipal
Employees, AFL-CIO
Audubon California
California Native Plant Society
Children Now
First 5 of Santa Clara County
PawPAC
The Child Abuse Prevention Center
ARGUMENTS IN SUPPORT : The author states:
"The Personal Income Tax Law authorizes individual
taxpayers to designate on their personal income tax (PIT)
form contribution amounts in excess of their tax
liability for the support of 15 voluntary contribution
funds. Two of these funds, the State Children's Trust
Fund for the Prevention of Child Abuse and the Rare and
Endangered Species Preservation Program, are set to
sunset on January 1, 2013. This bill would extend the
sunset date to January 1, 2018.
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"Both the Children's Trust Fund and the Preservation
Program have enjoyed significant success as VCFs. Each
of these funds first appeared on the PIT form in 1983.
The Franchise Tax Board reports that in calendar year
2010, the Children's Trust Fund received $448,081 in
contributions, while the Preservation Program received
$578,215. Contributions to the Children's Trust Fund are
allocated to the Department of Social Services for
innovative child abuse and neglect prevention and
intervention programs. Contributions to the Preservation
Program are allocated to the Department of Fish and Game
for various programs for endangered and rare animals and
plants.
"SB 164 would allow these two important programs to
continue to receive much needed funds through voluntary
contributions on PIT returns until January 1, 2018."
AGB:kc 5/27/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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